Category: United States of America

MIL-OSI: Nutanix Reports Third Quarter Fiscal 2025 Financial Results

Source: GlobeNewswire (MIL-OSI)

Delivers Outperformance Across All Guided Metrics

Reports 18% YoY ARR Growth and Strong Free Cash Flow

SAN JOSE, Calif., May 28, 2025 (GLOBE NEWSWIRE) — Nutanix, Inc. (NASDAQ: NTNX), a leader in hybrid multicloud computing, today announced financial results for its third quarter ended April 30, 2025.

“We delivered solid third quarter results, above the high end of our guided ranges, driven by the strength of the Nutanix Cloud Platform and demand from businesses looking for a trusted long-term partner,” said Rajiv Ramaswami, President and CEO of Nutanix. “Our recent announcements around support for external storage, modern applications, and generative AI reflect our continued focus on driving innovation and broadening our partnerships to further enhance the value proposition of the Nutanix Cloud Platform.”

“Our third quarter results included 18% year-over-year ARR growth and strong year-to-date free cash flow generation,” said Rukmini Sivaraman, CFO of Nutanix. “We remain focused on delivering sustainable, profitable growth.”

Third Quarter Fiscal 2025 Financial Summary

	Q3 FY’25	Q3 FY’24	Y/Y Change
Annual Recurring Revenue (ARR)¹	$2.14 billion	$1.82 billion	18%
Average Contract Duration²	3.1 years	3.0 years	0.1 year
Revenue	$639.0 million	$524.6 million	22%
GAAP Gross Margin	87.0%	84.8%	220 bps
Non-GAAP Gross Margin	88.2%	86.5%	170 bps
GAAP Operating Expenses	$507.3 million	$456.5 million	11%
Non-GAAP Operating Expenses	$426.5 million	$380.4 million	12%
GAAP Operating Income (Loss)	$48.6 million	$(11.6) million	$60.2 million
Non-GAAP Operating Income	$137.1 million	$73.3 million	$63.8 million
GAAP Operating Margin	7.6%	(2.2)%	980 bps
Non-GAAP Operating Margin	21.5%	14.0%	750 bps
Net Cash Provided by Operating Activities	$218.5 million	$96.4 million	$122.1 million
Free Cash Flow	$203.4 million	$78.3 million	$125.1 million

Reconciliations between GAAP and non-GAAP financial measures and key performance measures, to the extent available, are provided in the tables of this press release.

Recent Company Highlights

Nutanix held its annual .NEXT conference in Washington, D.C. on May 7 – 9, and made the following announcements at the event:

Fourth Quarter Fiscal 2025 Outlook

Revenue	$635 – $645 million
Non-GAAP Operating Margin	15.5% to 16.5%
Weighted Average Shares Outstanding (Diluted)³	Approximately 297 million

Fiscal 2025 Outlook

Revenue	$2.52 – $2.53 billion
Non-GAAP Operating Margin	~20.5%
Free Cash Flow	$700 – $730 million

Supplementary materials to this press release, including our third quarter fiscal 2025 earnings presentation, can be found at https://ir.nutanix.com/financial/quarterly-results.

Webcast and Conference Call Information

Nutanix executives will discuss the Company’s third quarter fiscal 2025 financial results on a conference call today at 4:30 p.m. Eastern Time/1:30 p.m. Pacific Time. Interested parties may access the conference call by registering at this link to receive dial in details and a unique PIN number. The conference call will also be webcast live on the Nutanix Investor Relations website at ir.nutanix.com. An archived replay of the webcast will be available on the Nutanix Investor Relations website at ir.nutanix.com shortly after the call.

Footnotes

¹Annual Recurring Revenue, or ARR, for any given period, is defined as the sum of ACV for all subscription contracts in effect as of the end of a specific period. For the purposes of this calculation, we assume that the contract term begins on the date a contract is booked, unless the terms of such contract prevent us from fulfilling our obligations until a later period, and irrespective of the periods in which we would recognize revenue for such contract. Excludes all life-of-device contracts. ACV is defined as the total annualized value of a contract. The total annualized value for a contract is calculated by dividing the total value of the contract by the number of years in the term of such contract. Excludes amounts related to professional services and hardware.

²Average Contract Duration represents the dollar-weighted term, calculated on a billings basis, across all subscription contracts, as well as our limited number of life-of-device contracts, using an assumed term of five years for life-of-device licenses, executed in the period.

³Weighted average share count used in computing diluted non-GAAP net income per share.

Non-GAAP Financial Measures and Other Key Performance Measures

To supplement our consolidated financial statements, which are prepared and presented in accordance with GAAP, this press release includes the following non-GAAP financial and other key performance measures: non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, free cash flow, Annual Recurring Revenue (or ARR), and Average Contract Duration. In computing non-GAAP financial measures, we exclude certain items such as stock-based compensation and the related income tax impact, costs associated with our acquisitions (such as amortization of acquired intangible assets, income tax-related impact, and other acquisition-related costs), restructuring charges, litigation settlement accruals and legal fees related to certain litigation matters, the amortization and conversion of the debt discount and issuance costs related to debt, interest expense related to debt, inducement expense related to the repurchase of convertible senior notes, and other non-recurring transactions and the related tax impact. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, and non-GAAP operating margin are financial measures which we believe provide useful information to investors because they provide meaningful supplemental information regarding our performance and liquidity by excluding certain expenses and expenditures such as stock-based compensation expense that may not be indicative of our ongoing core business operating results. Free cash flow is a performance measure that we believe provides useful information to our management and investors about the amount of cash generated by the business after capital expenditures, and we define free cash flow as net cash provided by (used in) operating activities less purchases of property and equipment. ARR is a performance measure that we believe provides useful information to our management and investors as it allows us to better track the topline growth of our subscription business because it takes into account variability in term lengths. We use these non-GAAP financial and key performance measures for financial and operational decision-making and as a means to evaluate period-to-period comparisons. However, these non-GAAP financial and key performance measures have limitations as analytical tools and you should not consider them in isolation or as substitutes for analysis of our results as reported under GAAP. Non-GAAP gross margin, non-GAAP operating expenses, non-GAAP operating income, non-GAAP operating margin, and free cash flow are not substitutes for gross margin, operating expenses, operating income (loss), operating margin, and net cash provided by (used in) operating activities, respectively. There is no GAAP measure that is comparable to ARR or Average Contract Duration, so we have not reconciled the ARR or Average Contract Duration data included in this press release to any GAAP measure. In addition, other companies, including companies in our industry, may calculate non-GAAP financial measures and key performance measures differently or may use other measures to evaluate their performance, all of which could reduce the usefulness of our non-GAAP financial measures and key performance measures as tools for comparison. We urge you to review the reconciliation of our non-GAAP financial measures and key performance measures to the most directly comparable GAAP financial measures included below in the tables captioned “Reconciliation of GAAP to Non-GAAP Profit Measures” and “Reconciliation of GAAP Net Cash Provided By Operating Activities to Non-GAAP Free Cash Flow,” and not to rely on any single financial measure to evaluate our business. This press release also includes the following forward-looking non-GAAP financial measures as part of our fourth quarter fiscal 2025 outlook and/or our fiscal 2025 outlook: non-GAAP operating margin and free cash flow. We are unable to reconcile these forward-looking non-GAAP financial measures to their most directly comparable GAAP financial measures without unreasonable efforts, as we are currently unable to predict with a reasonable degree of certainty the type and extent of certain items that would be expected to impact the GAAP financial measures for these periods but would not impact the non-GAAP financial measures.

Forward-Looking Statements

This press release contains express and implied forward-looking statements, including, but not limited to, statements regarding: our business momentum and prospects, including the strength of our platform, demand from businesses looking for a trusted long-term partner, and our continued focus on driving innovation and broadening our partnerships; our focus on delivering sustainable, profitable growth; our fourth quarter fiscal 2025 outlook; and our fiscal 2025 outlook.

These forward-looking statements are not historical facts and instead are based on our current expectations, estimates, opinions, and beliefs. Consequently, you should not rely on these forward-looking statements. The accuracy of these forward-looking statements depends upon future events and involves risks, uncertainties, and other factors, including factors that may be beyond our control, that may cause these statements to be inaccurate and cause our actual results, performance or achievements to differ materially and adversely from those anticipated or implied by such statements, including, among others: the inherent uncertainty or assumptions and estimates underlying our projections and guidance, which are necessarily speculative in nature; any failure to successfully implement or realize the full benefits of, or unexpected difficulties or delays in successfully implementing or realizing the full benefits of, our business plans, strategies, initiatives, vision, objectives, momentum, prospects and outlook; our ability to achieve, sustain and/or manage future growth effectively; the rapid evolution of the markets in which we compete, including the introduction, or acceleration of adoption of, competing solutions, including public cloud infrastructure; failure to timely and successfully meet our customer needs; delays in or lack of customer or market acceptance of our new solutions, products, services, product features or technology; macroeconomic or geopolitical uncertainty; our ability to attract, recruit, train, retain, and, where applicable, ramp to full productivity, qualified employees and key personnel; factors that could result in the significant fluctuation of our future quarterly operating results (including anticipated changes to our revenue and product mix, the timing and magnitude of orders, shipments and acceptance of our solutions in any given quarter, our ability to attract new and retain existing end-customers, changes in the pricing and availability of certain components of our solutions, and fluctuations in demand and competitive pricing pressures for our solutions); our ability to form new or maintain and strengthen existing strategic alliances and partnerships, as well as our ability to manage any changes thereto; our ability to make share repurchases; and other risks detailed in our Annual Report on Form 10-K for the fiscal year ended July 31, 2024 filed with the U.S. Securities and Exchange Commission, or the SEC, on September 19, 2024 and our subsequent Quarterly Reports on Form 10-Q filed with the SEC. Additional information will be set forth in our Quarterly Report on Form 10-Q for the fiscal quarter ended April 30, 2025, which should be read in conjunction with this press release and the financial results included herein. Our SEC filings are available on the Investor Relations section of our website at ir.nutanix.com and on the SEC’s website at www.sec.gov. These forward-looking statements speak only as of the date of this press release and, except as required by law, we assume no obligation, and expressly disclaim any obligation, to update, alter or otherwise revise any of these forward-looking statements to reflect actual results or subsequent events or circumstances.

About Nutanix

Nutanix is a global leader in cloud software, offering organizations a single platform for running applications and managing data, anywhere. With Nutanix, companies can reduce complexity and simplify operations, freeing them to focus on their business outcomes. Building on its legacy as the pioneer of hyperconverged infrastructure, Nutanix is trusted by companies worldwide to power hybrid multicloud environments consistently, simply, and cost-effectively. Learn more at www.nutanix.com or follow us on social media @nutanix.

© 2025 Nutanix, Inc. All rights reserved. Nutanix, the Nutanix logo, and all Nutanix product and service names mentioned herein are registered trademarks or unregistered trademarks of Nutanix, Inc. (“Nutanix”) in the United States and other countries. Other brand names or marks mentioned herein are for identification purposes only and may be the trademarks of their respective holder(s). This press release is for informational purposes only and nothing herein constitutes a warranty or other binding commitment by Nutanix.

Investor Contact:
Richard Valera
ir@nutanix.com

Media Contact:
Jennifer Massaro
pr@nutanix.com


NUTANIX, INC. CONDENSED CONSOLIDATED BALANCE SHEETS (Unaudited)

	As of
	July 31, 2024			April 30, 2025
	(in thousands)
Assets
Current assets:
Cash and cash equivalents	$	655,270		$	872,599
Short-term investments		339,072			1,009,870
Accounts receivable, net		229,796			270,232
Deferred commissions—current		159,849			147,361
Prepaid expenses and other current assets		97,307			110,981
Total current assets		1,481,294			2,411,043
Property and equipment, net		136,180			143,711
Operating lease right-of-use assets		109,133			142,200
Deferred commissions—non-current		198,962			180,111
Intangible assets, net		5,153			2,809
Goodwill		185,235			185,235
Other assets—non-current		27,961			31,521
Total assets	$	2,143,918		$	3,096,630
Liabilities and Stockholders’ Deficit
Current liabilities:
Accounts payable	$	45,066		$	49,596
Accrued compensation and benefits		195,602			175,814
Accrued expenses and other current liabilities		24,967			22,463
Deferred revenue—current		954,543			1,008,731
Operating lease liabilities—current		24,163			24,951
Total current liabilities		1,244,341			1,281,555
Deferred revenue—non-current		918,163			1,020,467
Operating lease liabilities—non-current		90,359			120,351
Convertible senior notes, net		570,073			1,342,601
Other liabilities—non-current		49,130			43,090
Total liabilities		2,872,066			3,808,064
Stockholders’ deficit:
Common stock		7			7
Additional paid-in capital		4,118,898			4,179,565
Accumulated other comprehensive loss		146			3,391
Accumulated deficit		(4,847,199	)		(4,894,397	)
Total stockholders’ deficit		(728,148	)		(711,434	)
Total liabilities and stockholders’ deficit	$	2,143,918		$	3,096,630


NUTANIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS (Unaudited)

	Three Months Ended April 30,					Nine Months Ended April 30,
	2024			2025		2024			2025
	(in thousands, except per share data)
Revenue:
Product	$	255,465		$	345,479	$	802,047		$	1,001,585
Support, entitlements and other services		269,112			293,504		798,817			883,075
Total revenue		524,577			638,983		1,600,864			1,884,660
Cost of revenue:
Product ⁽¹⁾⁽²⁾		8,469			6,776		28,105			23,969
Support, entitlements and other services ⁽¹⁾		71,150			76,215		215,029			226,980
Total cost of revenue		79,619			82,991		243,134			250,949
Gross profit		444,958			555,992		1,357,730			1,633,711
Operating expenses:
Sales and marketing ⁽¹⁾⁽²⁾		245,901			260,402		717,926			775,185
Research and development ⁽¹⁾		159,220			186,413		471,596			543,157
General and administrative ⁽¹⁾		51,425			60,532		148,457			174,036
Total operating expenses		456,546			507,347		1,337,979			1,492,378
(Loss) income from operations		(11,588	)		48,645		19,751			141,333
Other income (expense), net		659			15,954		(2,520	)		25,172
(Loss) income before provision for income taxes		(10,929	)		64,599		17,231			166,505
Provision for income taxes		4,687			1,236		15,905			16,789
Net (loss) income	$	(15,616	)	$	63,363	$	1,326		$	149,716
Net (loss) income per share attributable to Class A common stockholders, basic	$	(0.06	)	$	0.24	$	0.01		$	0.56
Net (loss) income per share attributable to Class A common stockholders, diluted	$	(0.06	)	$	0.22	$	0.05		$	0.52
Weighted average shares used in computing net (loss) income per share attributable to Class A common stockholders, basic		245,766			267,566		243,688			267,081
Weighted average shares used in computing net (loss) income per share attributable to Class A common stockholders, diluted		245,766			296,804		297,055			292,942

________________
(1) Includes the following stock-based compensation expense:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2025		2024		2025
	(in thousands)
Product cost of revenue	$	1,576	$	401	$	5,201	$	2,425
Support, entitlements and other services cost of revenue		6,391		6,623		20,690		20,768
Sales and marketing		18,901		19,513		61,110		61,558
Research and development		38,719		42,162		117,664		132,489
General and administrative		16,705		15,543		47,594		49,179
Total stock-based compensation expense	$	82,292	$	84,242	$	252,259	$	266,419

________________
(2) Includes the following amortization of intangible assets:

	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2025		2024		2025
	(in thousands)
Product cost of revenue	$	766	$	546	$	2,626	$	2,080
Sales and marketing		99		89		218		265
Total amortization of intangible assets	$	865	$	635	$	2,844	$	2,345


NUTANIX, INC. CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

	Nine Months Ended April 30,
	2024			2025
	(in thousands)
Cash flows from operating activities:
Net income	$	1,326		$	149,716
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation and amortization		54,986			54,451
Stock-based compensation		252,259			266,419
Amortization of debt discount and issuance costs		33,738			2,519
Inducement expense from partial repurchase of the 2027 Notes		—			11,347
Operating lease cost, net of accretion		24,009			21,355
Non-cash interest expense		15,143			—
Other		(14,117	)		(4,690	)
Changes in operating assets and liabilities:
Accounts receivable, net		(49,669	)		(14,084	)
Deferred commissions		5,199			31,339
Prepaid expenses and other assets		37,588			(10,589	)
Accounts payable		10,326			3,774
Accrued compensation and benefits		29,660			(10,528	)
Accrued expenses and other liabilities		(83,857	)		(5,601	)
Operating leases, net		(22,394	)		(23,640	)
Deferred revenue		134,037			130,139
Net cash provided by operating activities		428,234			601,927
Cash flows from investing activities:
Maturities of investments		625,519			272,846
Purchases of investments		(740,034	)		(941,406	)
Sales of investments		—			2,011
Payments for acquisitions, net of cash acquired		(4,500	)		—
Purchases of property and equipment		(54,813	)		(59,533	)
Net cash used in investing activities		(173,828	)		(726,082	)
Cash flows from financing activities:
Proceeds from sales of shares through employee equity incentive plans		50,660			68,525
Taxes paid related to net share settlement of equity awards		(111,620	)		(212,919	)
Proceeds from the issuance of convertible notes, net of issuance costs		—			848,010
Payment of third-party debt issuance costs		—			(3,448	)
Partial repurchase of the 2027 Notes		—			(95,453	)
Payment of revolver issuance costs		—			(2,794	)
Repurchases of common stock		(106,131	)		(257,859	)
Payment of finance lease obligations		(2,928	)		(2,943	)
Net cash (used in) provided by financing activities		(170,019	)		341,119
Net increase in cash, cash equivalents and restricted cash	$	84,387		$	216,964
Cash, cash equivalents and restricted cash—beginning of period		515,771			655,662
Cash, cash equivalents and restricted cash—end of period	$	600,158		$	872,626
Restricted cash ⁽¹⁾		2,131			27
Cash and cash equivalents—end of period	$	598,027		$	872,599
Supplemental disclosures of cash flow information:
Cash paid for income taxes	$	20,938		$	25,550
Supplemental disclosures of non-cash investing and financing information:
Purchases of property and equipment included in accounts payable and accrued and other liabilities	$	983		$	1,186
Unpaid taxes related to net share settlement of equity awards included in accrued expenses and other liabilities	$	—		$	2,554

________________
(1) Included within other assets—non-current in the condensed consolidated balance sheets.

Reconciliation of Revenue to Billings (Unaudited)

	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2025		2024		2025
	(in thousands)
Total revenue	$	524,577	$	638,983	$	1,600,864	$	1,884,660
Change in deferred revenue		32,708		8,062		134,037		130,139
Total billings	$	557,285	$	647,045	$	1,734,901	$	2,014,799

Disaggregation of Revenue and Billings (Unaudited)

	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2025		2024		2025
	(in thousands)
Disaggregation of revenue:
Subscription revenue	$	486,620	$	609,663	$	1,498,081	$	1,794,777
Professional services revenue		26,240		28,001		74,083		83,316
Other non-subscription product revenue		11,717		1,319		28,700		6,567
Total revenue	$	524,577	$	638,983	$	1,600,864	$	1,884,660
Disaggregation of billings:
Subscription billings	$	515,920	$	627,249	$	1,617,593	$	1,925,278
Professional services billings		29,648		18,477		88,608		82,954
Other non-subscription product billings		11,717		1,319		28,700		6,567
Total billings	$	557,285	$	647,045	$	1,734,901	$	2,014,799

Subscription revenue — Subscription revenue includes any performance obligation which has a defined term, and is generated from the sales of software entitlement and support subscriptions, subscription software licenses and cloud-based software-as-a-service, or SaaS, offerings.

Ratable — We recognize revenue from software entitlement and support subscriptions and SaaS offerings ratably over the contractual service period, the substantial majority of which relate to software entitlement and support subscriptions.
Upfront — Revenue from our subscription software licenses is generally recognized upfront upon transfer of control to the customer, which happens when we make the software available to the customer.

Professional services revenue — We also sell professional services with our products. We recognize revenue related to professional services as they are performed.

Other non-subscription product revenue — Other non-subscription product revenue includes approximately $11.1 million and $26.3 million of non-portable software revenue for the three and nine months ended April 30, 2024, respectively, $0.5 million and $2.9 million of non-portable software revenue for the three and nine months ended April 30, 2025, respectively, $0.6 million and $2.4 million of hardware revenue for the three and nine months ended April 30, 2024, respectively, and $0.8 million and $3.7 million of hardware revenue for the three and nine months ended April 30, 2025, respectively.

Non-portable software revenue — Non-portable software revenue includes sales of our platform when delivered on a configured-to-order appliance by us or one of our OEM partners. The software licenses associated with these sales are typically non-portable and can be used over the life of the appliance on which the software is delivered. Revenue from our non-portable software products is generally recognized upon transfer of control to the customer.
Hardware revenue — In the infrequent transactions where the hardware appliance is purchased directly from Nutanix, we consider ourselves to be the principal in the transaction and we record revenue and costs of goods sold on a gross basis. We consider the amount allocated to hardware revenue to be equivalent to the cost of the hardware procured. Hardware revenue is generally recognized upon transfer of control to the customer.


Annual Recurring Revenue (Unaudited)

	Three Months Ended April 30,				Nine Months Ended April 30,
	2024		2025		2024		2025
	(in thousands)
Annual Recurring Revenue (ARR)	$	1,820,207	$	2,142,969	$	1,820,207	$	2,142,969


Reconciliation of GAAP to Non-GAAP Profit Measures (Unaudited)

	GAAP			Non-GAAP Adjustments																	Non-GAAP
	Three Months Ended April 30, 2025			(1)			(2)			(3)			(4)			(5)		(6)			Three Months Ended April 30, 2025
	(in thousands, except percentages and per share data)
Gross profit	$	555,992		$	7,024		$	546		$	—		$	—		$	—	$	—		$	563,562
Gross margin		87.0	%		1.1	%		0.1	%		—			—			—		—			88.2	%
Operating expenses:
Sales and marketing		260,402			(19,513	)		(89	)		—			—			—		—			240,800
Research and development		186,413			(42,162	)		—			—			—			—		—			144,251
General and administrative		60,532			(15,543	)		—			(3,545	)		—			—		—			41,444
Total operating expenses		507,347			(77,218	)		(89	)		(3,545	)		—			—		—			426,495
Income from operations		48,645			84,242			635			3,545			—			—		—			137,067
Operating margin		7.6	%		13.2	%		0.1	%		0.6	%		—			—		—			21.5	%
Net income	$	63,363		$	84,242		$	635		$	3,545		$	(80	)	$	2,950	$	(29,942	)	$	124,713
Weighted shares outstanding, basic		267,566																				267,566
Weighted shares outstanding, diluted ⁽⁷⁾		296,804																				296,804
Net income per share, basic	$	0.24		$	0.32		$	–		$	0.01		$	–		$	0.01	$	(0.11	)	$	0.47
Net income per share, diluted ⁽⁸⁾	$	0.22																			$	0.42

________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Legal fees
(4)   Other
(5)   Amortization of debt issuance costs and interest expense related to debt
(6)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we are using a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(7)   Includes 29,238 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(8)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $1,099 of interest expense related to the convertible senior notes

	GAAP			Non-GAAP Adjustments																			Non-GAAP
	Nine Months Ended April 30, 2025			(1)			(2)			(3)			(4)			(5)		(6)		(7)			Nine Months Ended April 30, 2025
	(in thousands, except percentages and per share data)
Gross profit	$	1,633,711		$	23,193		$	2,080		$	—		$	—		$	—	$	—	$	—		$	1,658,984
Gross margin		86.7	%		1.2	%		0.1	%		—			—			—		—		—			88.0	%
Operating expenses:
Sales and marketing		775,185			(61,558	)		(265	)		—			—			—		—		—			713,362
Research and development		543,157			(132,489	)		—			—			—			—		—		—			410,668
General and administrative		174,036			(49,179	)		—			(6,480	)		—			—		—		—			118,377
Total operating expenses		1,492,378			(243,226	)		(265	)		(6,480	)		—			—		—		—			1,242,407
Income from operations		141,333			266,419			2,345			6,480			—			—		—		—			416,577
Operating margin		7.5	%		14.2	%		0.1	%		0.3	%		—			—		—		—			22.1	%
Net income	$	149,716		$	266,419		$	2,345		$	6,480		$	(210	)	$	11,347	$	5,369	$	(74,862	)	$	366,604
Weighted shares outstanding, basic		267,081																						267,081
Weighted shares outstanding, diluted ⁽⁸⁾		292,942																						292,942
Net income per share, basic	$	0.56		$	1.00		$	0.01		$	0.02		$	–		$	0.04	$	0.02	$	(0.28	)	$	1.37
Net income per share, diluted ⁽⁹⁾	$	0.52																					$	1.25

________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Legal fees
(4)   Other
(5)   Inducement expense related to partial repurchase of the 2027 Notes
(6)   Amortization of debt issuance costs and interest expense related to debt
(7)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we are using a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(8)   Includes 25,861 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(9)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $2,074 of interest expense related to the convertible senior notes

	GAAP			Non-GAAP Adjustments																	Non-GAAP
	Three Months Ended April 30, 2024			(1)			(2)			(3)			(4)			(5)		(6)			Three Months Ended April 30, 2024
	(in thousands, except percentages and per share data)
Gross profit	$	444,958		$	7,967		$	766		$	—		$	—		$	—	$	—		$	453,691
Gross margin		84.8	%		1.6	%		0.1	%		—			—			—		—			86.5	%
Operating expenses:
Sales and marketing		245,901			(18,901	)		(99	)		—			—			—		—			226,901
Research and development		159,220			(38,719	)		—			—			—			—		—			120,501
General and administrative		51,425			(16,705	)		—			(1,707	)		—			—		—			33,013
Total operating expenses		456,546			(74,325	)		(99	)		(1,707	)		—			—		—			380,415
(Loss) income from operations		(11,588	)		82,292			865			1,707			—			—		—			73,276
Operating margin		(2.2	)%		15.7	%		0.2	%		0.3	%		—			—		—			14.0	%
Net (loss) income	$	(15,616	)	$	82,292		$	865		$	1,707		$	(110	)	$	16,876	$	(13,453	)	$	72,561
Weighted shares outstanding, basic		245,766																				245,766
Weighted shares outstanding, diluted ⁽⁷⁾		245,766																				301,860
Net (loss) income per share, basic	$	(0.06	)	$	0.33		$	–		$	0.01		$	–		$	0.07	$	(0.05	)	$	0.30
Net (loss) income per share, diluted	$	(0.06	)																		$	0.24

________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Legal fees
(4)   Other
(5)   Amortization of debt discount and issuance costs and interest expense related to convertible senior notes
(6)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we are using a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(7)   Includes 56,094 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans

	GAAP			Non-GAAP Adjustments																				Non-GAAP
	Nine Months Ended April 30, 2024			(1)			(2)			(3)			(4)			(5)			(6)		(7)			Nine Months Ended April 30, 2024
	(in thousands, except percentages and per share data)
Gross profit	$	1,357,730		$	25,891		$	2,626		$	—		$	—		$	—		$	—	$	—		$	1,386,247
Gross margin		84.8	%		1.6	%		0.2	%		—			—			—			—		—			86.6	%
Operating expenses:
Sales and marketing		717,926			(61,110	)		(218	)		194			—			—			—		—			656,792
Research and development		471,596			(117,664	)		—			—			—			—			—		—			353,932
General and administrative		148,457			(47,594	)		—			—			(1,755	)		(225	)		—		—			98,883
Total operating expenses		1,337,979			(226,368	)		(218	)		194			(1,755	)		(225	)		—		—			1,109,607
Income from operations		19,751			252,259			2,844			(194	)		1,755			225			—		—			276,640
Operating margin		1.2	%		15.8	%		0.2	%		—			0.1	%		—			—		—			17.3	%
Net income	$	1,326		$	252,259		$	2,844		$	(194	)	$	1,755		$	925		$	49,874	$	(49,034	)	$	259,755
Weighted shares outstanding, basic		243,688																							243,688
Weighted shares outstanding, diluted ⁽⁸⁾		297,055																							297,055
Net income per share, basic	$	0.01		$	1.04		$	0.01		$	–		$	0.01		$	–		$	0.20	$	(0.20	)	$	1.07
Net income per share, diluted ⁽⁹⁾	$	0.05																						$	0.87

________________
(1)   Stock-based compensation expense
(2)   Amortization of intangible assets
(3)   Restructuring charges (reversals)
(4)   Legal fees
(5)   Other
(6)   Amortization of debt discount and issuance costs and interest expense related to convertible senior notes
(7)   Income tax effect of non-GAAP adjustments. Beginning in the third quarter of fiscal 2025, and retrospectively applied to comparable prior year periods, we are using a long-term projected non-GAAP tax rate of 20% for the purposes of determining our non-GAAP net income and non-GAAP income per share, which is based on our current long-term projections. We believe a long-term projected tax rate of 20% better aligns with the non-GAAP measure of profitability, reduces volatility of the non-GAAP tax rate and provides better consistency across reporting periods. Our estimated long-term projected tax rate is subject to change for a variety of reasons, including tax law changes in major jurisdictions in which we operate, changes in our geographic earnings mix, or other changes to our strategy or business operations. We will re-evaluate our long-term projected tax rate as appropriate.
(8)   Includes 53,367 potentially dilutive shares related to convertible senior notes and the issuance of shares under employee equity incentive plans
(9)   In accordance with ASC 260, in order to calculate GAAP net income per share, diluted, the numerator has been adjusted to add back $12,749 of interest expense related to the convertible senior notes


Reconciliation of GAAP Net Cash Provided by Operating Activities to Non-GAAP Free Cash Flow (Unaudited)

	Three Months Ended April 30,						Nine Months Ended April 30,
	2024			2025			2024			2025
	(in thousands)
Net cash provided by operating activities	$	96,353		$	218,506		$	428,234		$	601,927
Purchases of property and equipment		(18,029	)		(15,095	)		(54,813	)		(59,533	)
Free cash flow	$	78,324		$	203,411		$	373,421		$	542,394

The MIL Network –

May 29, 2025

MIL-OSI USA: Sen. Cramer: DOT Awards $9.2 Million to North Dakota Department of Transportation

US Senate News:

Source: United States Senator Kevin Cramer (R-ND)
BEULAH, N.D. – The U.S. Department of Transportation (DOT) awarded two grants totaling $9,201,975 to the North Dakota Department of Transportation through the Federal Highway Administration’s Emergency Relief (ER) Program. The ER Program supplements state and local resources to help pay for substantial expenses resulting from extraordinary conditions. The awards will go toward the following repairs following extreme weather events in North Dakota:
$8,946,150 to address the severe flooding in Eastern North Dakota which occurred on April 12, 2022. The flooding resulted in widespread damage to culverts and roadway erosion on state and county roadways.
$255,825 to address damages from an overland and riverine flooding event on April 10, 2023. The flooding led to a landslide, damage of culverts, and erosion of state and county roadways.

MIL OSI USA News –

May 29, 2025
MIL-OSI USA: Cramer, Talon Metals Celebrate Advanced Nickel, Copper Minerals Processing Facility in Beulah

US Senate News:

Source: United States Senator Kevin Cramer (R-ND)
Project to advance American mineral production
BEULAH, N.D. – U.S. Senator Kevin Cramer (R-ND) joined Talon Metals leadership to celebrate securing a former Westmoreland Mining site where the company will develop its Beulah Minerals Processing Facility (BMPF). This facility is slated to be the world’s most advanced nickel and copper minerals processing facility.
The BMPF will process nickel and copper, utilizing nickel ore from a Talon mine in Minnesota and the fly ash byproduct of Mercer County coal-fired power stations. The nickel concentrate processed at the Beulah facility will be used in cathodes for EV batteries, and the fly ash will help chemically neutralize and harden the tailings. The nickel concentrate and other byproducts, including cobalt and iron, from the Beulah facility will be used by Tesla for its EV batteries.
Cramer, a member of the Senate Environment and Public Works (EPW) and Armed Services Committees, delivered remarks at the signing ceremony today in Beulah.
“You could not over exaggerate the significance of today, or the significance of what’s about to happen at the Westmoreland site,” said Cramer. “Its contribution to economic opportunity will be significant to national security, global security, and domestic supply chain development. I can hardly wait to see what happens next.”

In 2023, the U.S. Department of Energy (DOE) awarded nearly $115 million from the Bipartisan Infrastructure Law to Talon Metals for the construction of this facility, and Talon will provide a recipient cost share of nearly $320 million. This project includes workforce training in Mercer County and will offer employment opportunities to nearby communities and tribal members. The U.S. Department of Defense also awarded Talon over $20 million in Defense Production Act funding to increase exploration and development of domestic nickel.
Cramer is a longtime advocate for domestic critical minerals production, stressing the superiority of American labor and environmental standards and the importance of strategically decoupling supply chains from adversaries like China. He co-led a bipartisan letter with U.S. Senator Tina Smith (D-MN) to express their concerns regarding a potential critical mineral free trade agreement with Indonesia for the procurement of nickel. In 2022, Cramer also wrote a letter of support on behalf of Talon’s application to then-DOE Secretary Jennifer Granholm.

MIL OSI USA News –

May 29, 2025
MIL-OSI USA: PHOTOS: Capito Tours CAMC, Hubbard Hospice House

US Senate News:

Source: United States Senator for West Virginia Shelley Moore Capito
CHARLESTON, W.Va. – Today, U.S. Senator Shelley Moore Capito (R-W.Va.), a member of the Senate Appropriations Committee, made stops in Charleston, W.Va. focused on health care.
First, Senator Capito toured the Charleston Area Medical Center’s (CAMC) updated intensive care unit (ICU). During the visit, Senator Capito also met with CAMC leadership to discuss the updated ICU and the health system’s continued impact on the state.
“CAMC and Vandalia Health System provide tremendous care to West Virginians. I was excited to tour the updated ICU today to see how CAMC continues to provide premiere care to our neighbors in the greatest need,” Senator Capito said.
Later, Senator Capito visited the Hubbard Hospice House in Charleston, W.Va. to see the impact of the nearly complete renovation project she helped support through the Congressionally Directed Spending process. Hubbard Hospice House is a 24-bed inpatient hospice facility that is the first standalone hospice facility in the state of West Virginia.
“The Hubbard Hospice House has long been a place of peace, dignity, and comfort for West Virginians during some of life’s most difficult moments,” Senator Capito said. “I was proud to advocate for this funding because preserving this facility means preserving a sanctuary for patients and their loved ones. As this vital wing reopens, it ensures families in the Kanawha Valley continue to have access to compassionate, community-based end-of-life care in a setting that feels like home.”
“This isn’t just a building. It’s a place of peace, a sanctuary for families during some of life’s most difficult moments. Thanks to Senator Capito, our generous donors, and community partners, we’re building on a legacy of care that will last another 20 years—and beyond,” HospiceCare CEO Chris Rawlings said.
Photos from today’s visits are below:

U.S. Senator Shelley Moore Capito (R-W.Va.) tours Charleston Area Medical Center’s (CAMC) intensive care unit (ICU) in Charleston, W.Va. on Wednesday, May 28, 2025.

U.S. Senator Shelley Moore Capito meets with Charleston Area Medical Center (CAMC) leadership to discuss the updated intensive care unit (ICU) in Charleston, W.Va. on Wednesday, May 28, 2025.

U.S. Senator Shelley Moore Capito visits Hubbard Hospice House to see their nearly complete renovation project in Charleston, W.Va. on Wednesday, May 28, 2025.

MIL OSI USA News –

May 29, 2025
MIL-OSI USA: CMS Demands Immediate Action from Hospitals Failing to Meet Quality and Financial Oversight Standards in Pediatric Gender Procedures

Source: US Department of Health and Human Services

CMS Demands Immediate Action from Hospitals Failing to Meet Quality and Financial Oversight Standards in Pediatric Gender Procedures

The Centers for Medicare & Medicaid Services (CMS) today sent a letter to select hospitals performing pediatric sex trait modification procedures outlining urgent concerns with both the quality standards adherence and profits related to these harmful procedures

MIL OSI USA News –

May 29, 2025
MIL-OSI USA: CMS Launches Oversight Initiative on Hospitals Performing Experimental Sex Trait Modification Procedures

Source: US Department of Health and Human Services

CMS Launches Oversight Initiative on Hospitals Performing Experimental Sex Trait Modification Procedures

The Centers for Medicare & Medicaid Services (CMS) today sent a letter to select hospitals performing pediatric sex trait modification procedures outlining urgent concerns with both the quality standards adherence and profits related to these harmful procedures

MIL OSI USA News –

May 29, 2025
MIL-OSI USA: SPC Severe Thunderstorm Watch 344

Source: US National Oceanic and Atmospheric Administration

Note: The expiration time in the watch graphic is amended if the watch is replaced, cancelled or extended.Note: Click for Watch Status Reports.
SEL4

URGENT – IMMEDIATE BROADCAST REQUESTED
Severe Thunderstorm Watch Number 344
NWS Storm Prediction Center Norman OK
320 PM CDT Wed May 28 2025

The NWS Storm Prediction Center has issued a

* Severe Thunderstorm Watch for portions of
Southeast Louisiana
Southern Mississippi

* Effective this Wednesday afternoon and evening from 320 PM
until 900 PM CDT.

* Primary threats include…
Scattered damaging wind gusts to 65 mph possible

SUMMARY…At least an isolated downburst/damaging wind threat will
exist through late afternoon and early evening across the region
within a very moist and unstable air mass.

The severe thunderstorm watch area is approximately along and 65
statute miles north and south of a line from 40 miles south
southwest of Natchez MS to 50 miles east southeast of Pine Belt MS.
For a complete depiction of the watch see the associated watch
outline update (WOUS64 KWNS WOU4).

PRECAUTIONARY/PREPAREDNESS ACTIONS…

REMEMBER…A Severe Thunderstorm Watch means conditions are
favorable for severe thunderstorms in and close to the watch area.
Persons in these areas should be on the lookout for threatening
weather conditions and listen for later statements and possible
warnings. Severe thunderstorms can and occasionally do produce
tornadoes.

&&

OTHER WATCH INFORMATION…CONTINUE…WW 341…WW 342…WW 343…

AVIATION…A few severe thunderstorms with hail surface and aloft to
1 inch. Extreme turbulence and surface wind gusts to 55 knots. A few
cumulonimbi with maximum tops to 550. Mean storm motion vector
20025.

…Guyer

Note: The Aviation Watch (SAW) product is an approximation to the watch area. The actual watch is depicted by the shaded areas.
SAW4
WW 344 SEVERE TSTM LA MS 282020Z – 290200Z
AXIS..65 STATUTE MILES NORTH AND SOUTH OF LINE..
40SSW HEZ/NATCHEZ MS/ – 50ESE PIB/PINE BELT MS/
..AVIATION COORDS.. 55NM N/S /39NNW BTR – 29NNW SJI/
HAIL SURFACE AND ALOFT..1 INCH. WIND GUSTS..55 KNOTS.
MAX TOPS TO 550. MEAN STORM MOTION VECTOR 20025.

LAT…LON 32039156 32138855 30258855 30149156

THIS IS AN APPROXIMATION TO THE WATCH AREA. FOR A
COMPLETE DEPICTION OF THE WATCH SEE WOUS64 KWNS
FOR WOU4.

Watch 344 Status Report Message has not been issued yet.

Note: Click for Complete Product Text.Tornadoes

Probability of 2 or more tornadoes

Low ( 2 inches

Low (

MIL OSI USA News –

May 29, 2025
MIL-OSI USA: Fresno Man Pleads Guilty to Multiple Child Exploitation Offenses

Source: US State of North Dakota

A California man pleaded guilty today to sexual exploitation of children and distribution and receipt of child pornography.

According to court documents, Monico Erich Gastelo, 43, of Fresno, sexually exploited children using different methods. For example, in January 2019, Gastelo created a social media account where he claimed to be an 18-year-old boy. Gastelo then used the account to converse with at least one minor and request sexually explicit content from them.

“Today’s plea should serve as a reminder of the Justice Department’s commitment to securing justice for victims of online child sexual exploitation,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “I am grateful for the efforts of the investigators and prosecutors who continue to work tirelessly to investigate and prosecute those who harm children.”

“Not only did this defendant revictimize abused children depicted in the images, but attempted to victimize actual children within his orbit,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California. “The U.S. Attorney’s Office will continue to prioritize the prosecution of child sexual predators.”

“Today’s guilty plea represents our agents’ and analysts’ continued focus on targeting predators who exploit children online,” said Special Agent in Charge Tatum King of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) San Francisco. “Through collaboration with the Fresno County Sheriff’s Office, Fresno Police Department and the Central Valley Internet Crimes Against Children Task Force, we will make every effort to identify, locate, and arrest these criminals to help prevent the harm that they cause to our children. We appreciate the prosecutorial work by the U.S. Attorney’s Office for the Eastern District of California and the Justice Department’s Child Exploitation and Obscenity Section (CEOS) in furtherance of this investigation.”

Between Jan. 1, 2020, and March 23, 2020, Gastelo communicated with other individuals who were sexually attracted to children on Wickr, Snapchat, and Telegram. He sent and received multiple images and videos of child sexual abuse material (CSAM) on these platforms. Forensic review of Gastelo’s phones showed that he had over 1,500 images and videos of suspected CSAM.

Gastelo’s conduct escalated in May of 2020. A minor victim reported to law enforcement that he had been sexually exploited online and that an individual, who was later identified to be Gastelo, had added him on Snapchat. Gastelo sent over a dozen images of his penis to the minor victim and insisted that the minor victim send back CSAM of himself.

Gastelo pleaded guilty to one count of sexual exploitation of children and one count of distribution and receipt of child pornography. He is scheduled to be sentenced on Sept. 8, 2025 and faces a mandatory minimum penalty of 15 years in prison up to 30 years in prison on the sexual exploitation count and a mandatory minimum penalty of five years in prison up to 20 years in prison on the distribution and receipt count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Fresno County Police Department and the Department of Homeland Security investigated the case.

Trial Attorney McKenzie Hightower of CEOS and Assistant U.S. Attorney David Gappa for the Eastern District of California are prosecuting the case.

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

MIL OSI USA News –

May 29, 2025
MIL-OSI Security: California Man Sentenced to 64 Months in Prison for Online Car Sales Scam That Defrauded Hundreds of Victims Out of More Than $10 Million

Source: US FBI

COLUMBUS, Ohio – Leo Shimizu, 39, of San Francisco, was sentenced in U.S. District Court today to 64 months in prison and ordered to pay more than $10.6 million in restitution for leading a nationwide money laundering conspiracy involving the proceeds of fraudulent online vehicle sales.

The U.S. Attorney’s Office for the Southern District of Ohio previously prosecuted four other co-conspirators in this scheme, including a Columbus man who helped lead the conspiracy.

According to court documents, the online car sales scam cheated at least 850 victims around the country out of more than $10.6 million total. Co-conspirators were part of a network that attracted online customers through fraudulent postings for vehicle sales.

Shimizu, who is also known as “Lil Droppy,” posted and directed other individuals to post listings on websites like Craigslist and Cars.com for vehicles they were alleging to sell. In truth, the co-conspirators did not have the vehicles they claimed they were selling.

Shimizu and others communicated with victims through email and phone, posing as employees of eBay, and used third parties to open bank accounts in the names of shell corporations that appeared to be affiliated with eBay. They instructed victims to wire funds to various third-party bank accounts they set up. They claimed to be affiliated with eBay’s Buyer Protection Program, when in fact, no such relationship existed.

Shimizu pleaded guilty in November 2024 to conspiring to commit money laundering.

Kelly A. Norris, Acting United States Attorney for the Southern District of Ohio; and Karen Wingerd, Special Agent in Charge, Internal Revenue Service (IRS) Criminal Investigation; announced the sentence imposed by U.S. District Court Judge Edmund A. Sargus, Jr. Assistant United States Attorney Noah R. Litton is representing the United States in this case.

Acting U.S. Attorney Norris recognized the assistance of United States Secret Service in Toledo, Ohio and Miami, Florida; the FBI’s Baltimore field office; United States Postal Inspection Service in Detroit; New York State Police; the Canton, Ohio, Butler Village, Ohio, Mayfield Heights, Ohio, Bloomfield Township, Michigan, Marlboro Township, New Jersey and Janesville, Wisconsin police departments; and the Walworth County, Wisconsin and Clarke County, Alabama sheriff’s offices.

# # #

MIL Security OSI –

May 29, 2025
MIL-OSI Security: Fresno Man Pleads Guilty to Multiple Child Exploitation Offenses

Source: United States Attorneys General

A California man pleaded guilty today to sexual exploitation of children and distribution and receipt of child pornography.

According to court documents, Monico Erich Gastelo, 43, of Fresno, sexually exploited children using different methods. For example, in January 2019, Gastelo created a social media account where he claimed to be an 18-year-old boy. Gastelo then used the account to converse with at least one minor and request sexually explicit content from them.

“Today’s plea should serve as a reminder of the Justice Department’s commitment to securing justice for victims of online child sexual exploitation,” said Matthew R. Galeotti, Head of the Justice Department’s Criminal Division. “I am grateful for the efforts of the investigators and prosecutors who continue to work tirelessly to investigate and prosecute those who harm children.”

“Not only did this defendant revictimize abused children depicted in the images, but attempted to victimize actual children within his orbit,” said Acting U.S. Attorney Michele Beckwith for the Eastern District of California. “The U.S. Attorney’s Office will continue to prioritize the prosecution of child sexual predators.”

“Today’s guilty plea represents our agents’ and analysts’ continued focus on targeting predators who exploit children online,” said Special Agent in Charge Tatum King of U.S. Immigration and Customs Enforcement Homeland Security Investigations (HSI) San Francisco. “Through collaboration with the Fresno County Sheriff’s Office, Fresno Police Department and the Central Valley Internet Crimes Against Children Task Force, we will make every effort to identify, locate, and arrest these criminals to help prevent the harm that they cause to our children. We appreciate the prosecutorial work by the U.S. Attorney’s Office for the Eastern District of California and the Justice Department’s Child Exploitation and Obscenity Section (CEOS) in furtherance of this investigation.”

Between Jan. 1, 2020, and March 23, 2020, Gastelo communicated with other individuals who were sexually attracted to children on Wickr, Snapchat, and Telegram. He sent and received multiple images and videos of child sexual abuse material (CSAM) on these platforms. Forensic review of Gastelo’s phones showed that he had over 1,500 images and videos of suspected CSAM.

Gastelo’s conduct escalated in May of 2020. A minor victim reported to law enforcement that he had been sexually exploited online and that an individual, who was later identified to be Gastelo, had added him on Snapchat. Gastelo sent over a dozen images of his penis to the minor victim and insisted that the minor victim send back CSAM of himself.

Gastelo pleaded guilty to one count of sexual exploitation of children and one count of distribution and receipt of child pornography. He is scheduled to be sentenced on Sept. 8, 2025 and faces a mandatory minimum penalty of 15 years in prison up to 30 years in prison on the sexual exploitation count and a mandatory minimum penalty of five years in prison up to 20 years in prison on the distribution and receipt count. A federal district court judge will determine any sentence after considering the U.S. Sentencing Guidelines and other statutory factors.

The Fresno County Police Department and the Department of Homeland Security investigated the case.

Trial Attorney McKenzie Hightower of CEOS and Assistant U.S. Attorney David Gappa for the Eastern District of California are prosecuting the case.

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

MIL Security OSI –

May 29, 2025
MIL-OSI USA: Senators Scott, Cruz, Colleagues Introduce Protect LNG Act
US Senate News:
Source: United States Senator for South Carolina Tim Scott

WASHINGTON—U.S. Senator Tim Scott (R-S.C.) joined Senators Ted Cruz (R-Texas), John Cornyn (R-Texas), and Roger Wicker (R-Miss.) in reintroducing the Protect LNG Act. The legislation ensures that a court cannot vacate a previously authorized LNG permit, clarifies the venue for LNG lawsuits before federal courts, and mandates that courts grant expedited decisions in relevant cases.

“The Protect LNG Act is about bringing certainty back to American energy. Radical activists are using the courts to block or delay key energy projects that have already been approved—ultimately threatening jobs, driving up costs, and undermining our national security,” said Senator Scott. “For South Carolina, this legislation ensures stronger protections for our growing role in energy exports, stability in our port economy, and a clear signal to our allies that America will deliver. I’m proud to support legislation that doesn’t just keep the lights on, but keeps our country strong, competitive, and in control of its future.”

“American energy has the ability to metaphorically and literally power the world, and Texas is the lead exporter of U.S. LNG. Those achievements have been under attack by fringe environmental groups, who use and are enabled by politicized courts. This legislation counters such attacks, and I’m proud to lead the fight to protect energy producers, the jobs they create in Texas, and America’s energy leadership. The Senate should expeditiously take it up and pass it,” said Senator Cruz.

“Oil and natural gas production employs hundreds of thousands of hardworking Texans and is a critical part of the Texas economy, as well as our nation’s energy sector as a whole,” said Senator Cornyn. “I am proud to lead this bill alongside Sen. Cruz to help protect energy projects across our country from lawsuits that far-left climate activists file in an attempt to hamstring American energy.”

“The United States has an abundance of LNG, which is essential for establishing American energy dominance and safeguarding our national security. The Protect LNG Act would prevent energy production from being politicized or undermined by far-left environmental groups. I am committed to defending energy job creators and preserving American energy independence,” said Senator Wicker.

Representative Wesley Hunt (R-Texas) introduced companion legislation in the U.S. House of Representatives.

BACKGROUND

This bill would:
- Ensures that a federal court cannot vacate previously authorized permits for Liquified Natural Gas (LNG) facilities.
- Specifies that circuit court jurisdiction for litigation against LNG facilities shall be determined by the location of the facility, not the headquarters location of the federal agency that issued the permits.
- Sets a 90-day clock for lawsuits challenging a federal permit for an LNG facility and requires expedited review of lawsuits against LNG facilities.
The full text of the Protect LNG Act can be found here.
MIL OSI USA News –
May 29, 2025
MIL-OSI Russia: B. Netanyahu says Hamas leader in Gaza M. Sinwar killed in Israeli airstrike

Translation. Region: Russian Federal

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

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

JERUSALEM, May 28 (Xinhua) — Israeli Prime Minister Benjamin Netanyahu on Wednesday confirmed that Mohammed Sinwar, the leader of the Palestinian Hamas movement in the Gaza Strip and the brother of late Hamas leader Yahya Sinwar, was killed in an Israeli air strike earlier this month.

Speaking in parliament, B. Netanyahu said that Israel was at a “dramatic turning point” in the war against Hamas and that the military had “liquidated Mohammed Sinwar.”

He added that Israel’s recent operations have focused on eliminating Hamas’ governing structures in Gaza.

There has been no confirmation of M. Sinwar’s death from Hamas or independent sources.

Netanyahu’s statement was the first official confirmation of Sinwar’s killing since a joint operation by the Israel Defense Forces (IDF) and the Shin Bet security service on May 13 hit a bunker beneath Gaza’s European Hospital in Khan Yunis. According to health authorities in the Palestinian enclave, the airstrike killed 26 people, but Sinwar’s fate remained unclear.

Mohammed Sinwar, 49, was a senior Hamas political and military figure who took over the movement’s operations and those of its militant wing, the Izz ad-Din al-Qassam Brigades, in the Gaza Strip in October 2024 following the death of his brother.

B. Netanyahu also gave an update on the hostages held in the enclave, saying Israeli intelligence said 20 were still alive and 38 were believed to be dead.

Israeli attacks have killed at least 54,084 people in Gaza since the war began in October 2023, according to health authorities. –0–

MIL OSI Russia News –

May 29, 2025
MIL-OSI USA: SR 165 Carbon River/Fairfax Bridge planning study online open house available May 28 to June 17
Source: Washington State News 2

CARBONADO – People can now provide input on the future of State Route 165 at the Carbon River in Pierce County in an online open house.

The Washington State Department of Transportation published an online open house today, Wednesday, May 28 that focuses on data-driven recommendations that address safety concerns and long-term transportation needs for SR 165 across the Carbon River Valley.

The online open house accompanies two in-person open house events scheduled in June. The same information will be available both in-person and online. The open house events are part of a WSDOT SR 165 Carbon River/Fairfax Bridge planning study.

SR 165 Carbon River- Fairfax Bridge Planning Study online open house

When: Wednesday, May 28 to Tuesday, June 17

Where: engage.wsdot.wa.gov/sr-165-fairfax-bridge/

Details: The online open house gives people the opportunity to view proposed recommendations and provide comments through June 17.

Free internet access

Free, temporary internet access is available to those who do not have broadband service in locations throughout the state. To find the nearest Drive-In WiFi Hotspot visit the Department of Commerce website.

Free WiFi access is available at these locations for people who wish to participate in the online open house:
- Buckley Pierce County Library, 123 S. River Ave., Buckley, WA 98321
- Orting Pierce County Library, 202 Washington Ave. S., Orting, WA 98360
SR 165 Carbon River- Fairfax Bridge Planning Study in-person open houses

When: 4 to 6:30 p.m., Monday, June 2

Where: Carbonado School, 301 O’Ferrell Drive, Carbonado, WA 98323

When: 5:30 to 7:30 p.m., Wednesday, June 11

Where: Wilkeson Elementary School, 640 Railroad Ave., Wilkeson, WA 98396

Details: There is no formal presentation. Attendees are welcome to drop by anytime during the events. Project team members will be available to answer questions about the study and the options presented.

Background

WSDOT permanently closed the bridge on April 22. Recent inspections of the 103-year-old bridge revealed new deterioration of steel supports across the bridge. Since 2009, the bridge operated under vehicle weight restrictions. The structural challenges the bridge faced were brought on by years of deferred preservation due to lack of funding.

MIL OSI USA News –
May 29, 2025
MIL-OSI USA: Governor Stein Urges Congress to Lower Costs for North Carolinians at NC State Emerging Issues Forum

Source: US State of North Carolina

Headline: Governor Stein Urges Congress to Lower Costs for North Carolinians at NC State Emerging Issues Forum

Governor Stein Urges Congress to Lower Costs for North Carolinians at NC State Emerging Issues Forum
lsaito
Wed, 05/28/2025 – 15:29

Raleigh, NC

Today Governor Josh Stein spoke at the Emerging Issues Forum at NC State to outline his energy priorities and urge Congress to lower costs for consumers by protecting clean energy projects in North Carolina.

“North Carolina is a leader in the clean energy economy, and we are home to more than 20,000 clean energy jobs and $24 billion in clean energy investments,” said Governor Josh Stein. “Our state is well-positioned to continue that success, and I urge Congress to protect the clean energy investments that have contributed to our state’s prosperity.”

Governor Stein is committed to supporting and developing North Carolina’s growing clean energy sector. Last month, the Governor joined Boviet Solar at the grand opening of its new solar module manufacturing facility in Greenville, which has already created nearly 400 jobs with more on the way. As part of his second recovery budget announcement last week, Governor Stein proposed $239 million to strengthen critical infrastructure in western North Carolina, including investing in projects to safeguard against future disasters.

Congress’ proposed repeal of the Inflation Reduction Act could cost North Carolina tens of thousands of jobs by 2030, along with billions in clean energy investments spurred by clean energy and manufacturing tax credits. Repealing the credits could also raise electricity costs for North Carolina families by $200 per year. Governor Stein is urging North Carolina’s congressional delegation to lower costs for North Carolina families by preserving the Inflation Reduction Act’s clean energy tax credits.

May 28, 2025

MIL OSI USA News –

May 29, 2025
MIL-OSI USA: Former Alabama Police Officer Sentenced for Civil Rights Violation and Child Sexual Exploitation

Source: US State of California

A former Killen, Alabama, Police Department (KPD) officer was sentenced today in the Northern District of Alabama to 15 years in prison for sexually assaulting a woman while on duty and for receiving sexually explicit photos of a minor.

According to documents filed in connection with this case, on Nov. 12, 2023, KPD Officer Jarrod Gailen Webster violated the civil rights of a woman after initiating a traffic stop on the woman’s vehicle. Webster asked the woman to step out of her vehicle and asked her what she wanted to do to “get out of this.” When the woman told Webster that she was not going to do anything for him, Webster handcuffed the woman and sexually assaulted her.

Further, between June 2016 and October 2018, Webster communicated with a minor by phone, and he asked the minor to produce and send him sexually explicit images. The minor victim sent multiple photos to Webster at his request, at least one of which constituted child sexual abuse material.

Webster pleaded guilty to one count of deprivation of rights under color of law and one count of sexual exploitation of children on March 4, 2025.

“Jarrod Webster forcibly assaulted a woman after a traffic stop, and exploited a minor to receive sexually explicit images,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This was a gross abuse of his authority as a police officer and a betrayal of the public trust. I am proud of our DOJ Civil Rights team for holding him accountable.”

“This sentence sends a clear message that such criminal conduct will not be tolerated,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “I commend the dedication of our law enforcement partners and prosecutors to ensure that Webster was held accountable for his actions.”

“Law enforcement officers are entrusted with significant responsibility and are therefore held to a higher standard,” said Special Agent in Charge David R. Fitzgibbons of the FBI Birmingham Field Office. “Today’s sentencing clearly demonstrates there are serious consequences when someone tarnishes the badge by breaking the law. Jerrod Webster brought shame to the badge by committing the horrific crimes of sexually assaulting a woman in his care and receiving sexually explicit images of a minor. His sentencing confirms that the FBI has zero tolerance for officials who prey on the citizens they are sworn to protect.”

The FBI Birmingham Field Office investigated the case.

Assistant U.S. Attorney Michael Royster for the Northern District of Alabama and Trial Attorney Sarah Howard of the Civil Rights Division’s Criminal Section prosecuted the case.

MIL OSI USA News –

May 29, 2025
MIL-OSI Security: Former Alabama Police Officer Sentenced for Civil Rights Violation and Child Sexual Exploitation

Source: United States Attorneys General

A former Killen, Alabama, Police Department (KPD) officer was sentenced today in the Northern District of Alabama to 15 years in prison for sexually assaulting a woman while on duty and for receiving sexually explicit photos of a minor.

According to documents filed in connection with this case, on Nov. 12, 2023, KPD Officer Jarrod Gailen Webster violated the civil rights of a woman after initiating a traffic stop on the woman’s vehicle. Webster asked the woman to step out of her vehicle and asked her what she wanted to do to “get out of this.” When the woman told Webster that she was not going to do anything for him, Webster handcuffed the woman and sexually assaulted her.

Further, between June 2016 and October 2018, Webster communicated with a minor by phone, and he asked the minor to produce and send him sexually explicit images. The minor victim sent multiple photos to Webster at his request, at least one of which constituted child sexual abuse material.

Webster pleaded guilty to one count of deprivation of rights under color of law and one count of sexual exploitation of children on March 4, 2025.

“Jarrod Webster forcibly assaulted a woman after a traffic stop, and exploited a minor to receive sexually explicit images,” said Assistant Attorney General Harmeet K. Dhillon of the Justice Department’s Civil Rights Division. “This was a gross abuse of his authority as a police officer and a betrayal of the public trust. I am proud of our DOJ Civil Rights team for holding him accountable.”

“This sentence sends a clear message that such criminal conduct will not be tolerated,” said U.S. Attorney Prim F. Escalona for the Northern District of Alabama. “I commend the dedication of our law enforcement partners and prosecutors to ensure that Webster was held accountable for his actions.”

“Law enforcement officers are entrusted with significant responsibility and are therefore held to a higher standard,” said Special Agent in Charge David R. Fitzgibbons of the FBI Birmingham Field Office. “Today’s sentencing clearly demonstrates there are serious consequences when someone tarnishes the badge by breaking the law. Jerrod Webster brought shame to the badge by committing the horrific crimes of sexually assaulting a woman in his care and receiving sexually explicit images of a minor. His sentencing confirms that the FBI has zero tolerance for officials who prey on the citizens they are sworn to protect.”

The FBI Birmingham Field Office investigated the case.

Assistant U.S. Attorney Michael Royster for the Northern District of Alabama and Trial Attorney Sarah Howard of the Civil Rights Division’s Criminal Section prosecuted the case.

MIL Security OSI –

May 29, 2025
MIL-OSI Security: Five New Jersey Pharmacies Agree to Pay $1.935 Million to Resolve False Claims Act Allegations of Billing for Drugs Not Dispensed
Source: Office of United States Attorneys

NEWARK, N.J. – Five pharmacies located in Jersey City, Bayonne, and Elizabeth have agreed to pay $1,935,000 to resolve allegations that they violated the False Claims Act by knowingly billing federal health care programs for medications that they never dispensed, U.S. Attorney Alina Habba announced today.

According to the contentions of the United States in the settlement agreements, inventory records showed that the below listed pharmacies did not purchase enough medications from wholesalers to fill the prescriptions billed to the federal health care programs.
- 2818 JFK Pharmacy LLC agreed to pay $1,000,000 to resolve allegations that from January 2, 2020, through January 24, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries.
- 518 Summit Care Pharmacy LLC agreed to pay $600,000 to resolve allegations that from January 2, 2020, through March 28, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries.
- 1850 Greenville Pharmacy LLC agreed to pay $133,000 to resolve allegations that from January 2, 2020, through April 11, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries.
- 327 Alexandria Pharmacy LLC agreed to pay $101,000 to resolve allegations that from March 26, 2020, through April 2, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries.
- 516 Broadway Care Pharmacy LLC agreed to pay $101,000 to resolve allegations that from January 2, 2020, through April 4, 2022, it caused the submission of claims for reimbursement to the Medicare Part D Program and the New Jersey Medicaid Program for drugs that were never dispensed to beneficiaries.
“All pharmacies that bill federal programs must ensure accurate billing and may not bill for medications they never dispensed. The Office will continue to pursue entities that fail in their essential responsibilities and engage in fraud, waste, or abuse.”

– U.S. Attorney Alina Habba

The resolution obtained in this matter was the result of a coordinated effort between the U.S. Attorney’s Office for the District of New Jersey and the Justice Department’s Civil Division, Commercial Litigation Branch, Fraud Section.

The government is represented by Assistant U.S. Attorneys Kruti Dharia and Robert Toll of the Health Care Fraud & Opioids Abuse Unit and Senior Trial Counsel Jennifer Cihon in the Civil Division’s Commercial Litigation Branch (Fraud Section).

The government’s pursuit of these matters illustrates the government’s emphasis on combating healthcare 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 the Department of Health and Human Services, at 1-800-HHS-TIPS (800-447-8477).

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

###

MIL Security OSI –
May 29, 2025
MIL-OSI Security: Great Falls man sentenced to prison for strangulation and child abuse

Source: Office of United States Attorneys

GREAT FALLS – A Great Falls man who assaulted a woman and her child on the Rocky Boy’s Indian Reservation was sentenced yesterday to 31 months in prison to be followed by 3 years of supervised release, U.S. Attorney Kurt Alme said.

Lane Thomas Lamere, 37, pleaded guilty in January 2025 to one count of strangulation and one count of felony child abuse.

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

The government alleged in court documents that on Friday, January 12, 2024, Lamere broke into the residence of Jane Doe 2, who was home with her three-year old daughter, Jane

Doe 1. Lamere dragged Jane Doe 2 to her back bedroom and choked her. Jane Doe 1 walked into the room while this was happening. When Lamere saw Jane Doe 1, he grabbed her head and put her into a headlock. Jane Doe 2 was able to get away, but Lamere would not let go of Jane Doe 1. When Jane Doe 2 could not get Lamere to let go of her daughter, she ran next door to get help from her neighbor, who called the police as they ran back to Jane Doe 2’s house.

When Jane Doe 2 and her neighbor returned to the house, Lamere was in the bathroom attached to the bedroom atop Jane Doe 1. The neighbor recalled seeing him bite Jane Doe 1 on her face. The neighbor also recalled Lamere squeezing Jane Doe 1, pulling her hair, and covering her nose and mouth. Both the neighbor and Jane Doe 2 tried to pull him off Jane Doe 1 and even struck him with a snow shovel, but he did not release Jane Doe 1.

Law enforcement bodycam footage shows the neighbor hysterically crying for help, but Lamere remained in the back bathroom on top of Jane Doe 1. When he refused to follow law enforcement orders to get off Jane Doe 1, an officer tased him. The officer then removed Jane Doe 1 from beneath Lamere. EMTs arrived and transported Jane Does 1 and 2 to Northern Montana Hospital. Jane Doe 1 was treated for various contusions to her body as well as bite marks to her arm and face.

The U.S. Attorney’s Office prosecuted the case. The investigation was conducted by the FBI and Chippewa Cree Law Enforcement Services.

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

MIL Security OSI –

May 29, 2025
MIL-OSI Security: Browning man sentenced to prison for sexually abusing a child

Source: Office of United States Attorneys

GREAT FALLS – A Browning man who sexually assaulted a minor was sentenced yesterday to 30 months in prison to be followed by 5 years of supervised release, U.S. Attorney Kurt Alme said.

Delbert Dwayne Mowitch, 23, pleaded guilty in January 2025 to one count of sexual abuse of a minor.

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

The government alleged in court documents that in January 2024, Mowitch met 12-year-old Jane Doe. In April 2024, a witness reported to law enforcement that Mowitch and Doe were in a sexual relationship.

Doe was interviewed and confirmed she and Mowitch had been together, and that she would stay at his house with him. She reported that when they were together they would drink alcohol and smoke dabs. She confirmed that during the time she stayed with Mowitch, they had sex twice. She said the first time it happened Mowitch was drunk, he took off her pants, and she just froze. He started penetrating her vagina with his penis and she described it hurting a great deal. She reported that during a second encounter, she remembered Mowitch asking her for sex and telling him no. She blacked out and when she woke up, she was in pain and had cramps. She saw a used condom she believed had been used on her. She reported Mowitch showed her a video from the night before purporting to show her consenting to the sexual act. Doe provided law enforcement screenshots of messages between her and Mowitch consistent with an ongoing relationship.

A second witness told law enforcement that Mowitch admitted in February 2024 that he had engaged in sexual intercourse with Doe. The witness reported Mowitch knew Doe’s age at the time they started talking.

Assistant U.S. Attorney Kalah Paisley prosecuted the case. The investigation was conducted by the FBI and Blackfeet Law Enforcement Services.

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

MIL Security OSI –

May 29, 2025
MIL-OSI Security: South Carolina Man Charged in Maryland for Multi-Million-Dollar Medicare Fraud and Ponzi Schemes

Source: Office of United States Attorneys

Baltimore, Maryland – Today, the U.S. Attorney’s Office for the District of Maryland unsealed two indictments. The indictments charged a South Carolina man with defrauding Medicare through a laboratory test scheme during the COVID-19 pandemic and with defrauding customers of his private charter jet company.

Kelly O. Hayes, U.S. Attorney for the District of Maryland, announced the indictment with Matthew R. Galeotti, Head of the Justice Department’s Criminal Division; Special Agent in Charge William J. DelBagno, Federal Bureau of Investigation (FBI) – Baltimore Field Office; Special Agent in Charge Maureen R. Dixon, Department of Health and Human Services Office of Inspector General (HHS-OIG); and Special Agent in Charge Greg Thompson, Department of Transportation Office of Inspector General (DOT-OIG).

As alleged in the first indictment, during the COVID-19 pandemic, Patrick Britton-Harr, 41, of Charleston, South Carolina, and formerly of Annapolis, Maryland, offered COVID-19 screening tests to nursing home patients across the country. Britton-Harr then allegedly fraudulently billed Medicare, through his company Provista Health, for expensive respiratory pathogen panel (RPP) tests for these patients. The RPP tests were medically unnecessary, never ordered by a treating physician as required, and many were never actually performed, including tests for patients who were already deceased. Through Provista Health, Britton-Harr caused the submission of more than $15 million in fraudulent claims for RPP tests to Medicare. Medicare eventually paid out more than $5 million.

According to the second indictment, Britton-Harr owned and controlled AeroVanti, Inc. and its affiliated entities. Through AeroVanti, a private air club offering members a la carte access to private jets, Britton-Harr encouraged “Top Gun” members to pay $150,000 upfront to secure block flight hours. In return, Britton-Harr promised to use their money to purchase specific aircraft, in which Top Gun members would have a securitized interest.

Britton-Harr recruited nearly 100 Top Gun members, who collectively paid approximately $15 million in upfront payments, to purchase five aircraft. Instead of buying the aircraft, Britton-Harr allegedly misappropriated members’ money for his own personal benefit, including paying for yachts and jewelry, his living expenses, and to rent a property near Tampa, Florida. Then Britton-Harr attempted to conceal his fraud by obtaining a $1.5-million loan to purchase one of the aircraft he already claimed that he purchased with Top Gun funds by withholding material information from the lender to obtain the loan.

“It is unconscionable for someone to defraud the government and others for personal gain, especially as we faced a global health crisis,” Hayes said. “Britton-Harr showed a total disregard for those who depend on our Medicare system for health care services and for the individuals he scammed through his private-jet company. The U.S. Attorney’s Office is committed to working with our federal law-enforcement partners to bring those to justice who break the law and take advantage of others.”

“The defendant allegedly perpetrated two fraud schemes, first exploiting the COVID-19 pandemic to defraud Medicare out of millions of dollars and then stealing millions more from customers of his aviation company, all for his personal benefit,” Galeotti said. “These indictments demonstrate the Criminal Division’s commitment to rooting out bad actors who steal from taxpayer-supported health care programs and defraud American consumers.”

“Patick Britton-Harr’s repeated crimes reveal a man with no moral compass motivated by pure greed. His deceit and scheming resulted in a staggering amount of loss to American taxpayers and the public,” DelBagno said. “He tried to fleece the U.S. government out of millions by taking advantage of a national crisis. After his laboratory testing business failed, Britton-Harr again turned to deception. Time and again, he chose to lie, steal, and deceive. No more. This investigation holds Britton-Harr accountable for his crimes and sends a clear message that the FBI and our partners will not allow such despicable behavior to go unchecked.”

“Individuals who steal from Medicare waste taxpayer dollars and create incisions in the fabric that holds our health care system together. HHS-OIG will continue the pursuit of upholding the integrity, trust, and confidence in federal health care programs, which benefits the people they serve,” Dixon said. “HHS-OIG, in collaboration with our law enforcement partners, will continuously investigate alleged attempts to defraud these programs.”

“The scope of the alleged fraud is staggering and underscores the extraordinary lengths to which individuals will go to deceive and exploit others under the guise of legitimate business, including private aviation services,” Thompson said. “The DOT-OIG remains steadfast in its commitment to working in coordination with our law enforcement and prosecutorial partners to pursue those who engage in egregious schemes designed solely for personal enrichment.”

Britton-Harr is charged with five counts of health care fraud and one count of money laundering in the indictment related to his RPP scheme. Additionally, Britton-Harr is charged with six counts of wire fraud in the indictment connected to the AeroVanti scheme.

If convicted, he faces a maximum penalty of 20 years in prison for each wire fraud count and 10 years in prison for each health care fraud and money laundering count. A federal district court judge determines sentencing after considering the U.S. Sentencing Guidelines and other statutory factors.

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

U.S. Attorney Hayes commended the FBI, HHS-OIG, and DOT-OIG for their work in investigating these cases. Ms. Hayes also thanked Assistant U.S. Attorneys Ari D. Evans and Matthew P. Phelps and Trial Attorneys David Peters and Chris Wenger, Criminal Division’s Fraud Section who are prosecuting these cases.

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

# # #

MIL Security OSI –

May 29, 2025
MIL-OSI Security: Heart Butte sex offender sentenced to over 20 years in prison for abusing multiple children

Source: Office of United States Attorneys

GREAT FALLS – A Heart Butte man who sexually assaulted several minors while being required to register as a sex offender was sentenced today to 272 months in prison to be followed by a lifetime of supervised release, U.S. Attorney Kurt Alme said.

Bradley Joseph Guardipee, 27, pleaded guilty in January 2025 to two counts of aggravated sexual abuse and one count of commission of a sex offense by a registered sex offender.

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

The government alleged in court documents that in July 2024, Jane Doe 3 disclosed she was sexually assaulted by Guardipee in 2022, when she was 11 years old. She said she was home sick from school and was left alone with Guardipee at a home in Heart Butte. She was taking a nap in another child’s bedroom while the other kids were at school. She woke up in pain to find her legs open and Guardipee on top of her penetrating her vagina with his penis. She reported she knew at least four other girls who were sexually abused by Guardipee. Forensic interviews followed and six girls disclosed some type of abusive touching by Guardipee.

Jane Doe 1 reported being sexually abused by Guardipee since she was about three years old. She recalled that on March 6, 2024, when she was 12 years old, she and Guardipee had taken his grandfather to dialysis in Browning. After they dropped his grandfather off, Guardipee told her she could drive and to sit on his lap. Guardipee grabbed Jane Doe by her arms and forced her onto his lap. Guardipee touched her on the breast and under her underwear, digitally penetrating her.

At the time of the March 2024 assault of Jane Doe 1, the defendant was required to register as a sex offender, though he never complied with that requirement. Guardipee was required to register after being convicted by a guilty plea on May 22, 2023, to sexual assault in Cascade County District Court.

Assistant U.S. Attorney Kalah Paisley prosecuted the case. The investigation was conducted by the FBI, U.S. Marshals Service, and Blackfeet Law Enforcement Services.

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

MIL Security OSI –

May 29, 2025
MIL-OSI Security: Gary Man Sentenced to Life in Prison for Drug Conspiracy and Using a Firearm to Commit Murder

Source: Office of United States Attorneys

HAMMOND–Devonte Hodge, 29 years old, of Gary, Indiana, was sentenced by United States District Court Judge Philip P. Simon after a jury found him guilty of conspiracy to distribute and possess with intent to distribute controlled substances and using a firearm to commit murder following a 6-day jury trial, announced Acting United States Attorney Tina L. Nommay.

Hodge was sentenced to life in prison for using a firearm to commit murder. He was also sentenced to 480 months in prison followed by 4 years of supervised release for conspiring to distribute and possess with intent to distribute cocaine and 100 grams or more of heroin. Both sentences are to run concurrently.

According to documents in the case, in the summer of 2016, Hodge and others conspired to sell and sold cocaine and heroin from a residence located in Gary, Indiana. Additionally, on October 8, 2016, Hodge shot and killed a victim who was sitting in a car in Gary, believing the victim was cooperating with law enforcement about the drug conspiracy.

This case was investigated by the FBI/GRIT Task Force and ATF/HIDTA Task Force with the assistance of the Hobart Police, the Indiana State Police, the Lake County Sheriff’s Department and the Gary Police Department. The case was prosecuted by Assistant United States Attorneys David J. Nozick and Joel Mathur.

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

MIL Security OSI –

May 29, 2025
MIL-OSI Security: Kansas Resident Charged with Assaulting Flight Attendant on Flight from Bradley International Airport

Source: Office of United States Attorneys

David X. Sullivan, United States Attorney for the District of Connecticut, and P.J. O’Brien, Special Agent in Charge of the New Haven Division of the Federal Bureau of Investigation, today announced that JULIUS JORDAN PRIESTER, 24, of Wichita, Kansas, has been arrested and charged by federal criminal complaint with a charge related to his assault of a crew member on a flight from Bradley International Airport last night.

As alleged in court documents and statements made in court, on May 27, 2025, Priester was a passenger on American Airlines Flight 3359 that departed from Bradley International Airport in Windsor Locks, Connecticut, at approximately 9:30 p.m. bound for Chicago. Thirty minutes to an hour into the flight, Priester stood up, began to take off his shirt, then ran to the back of the plane yelling “Help me.” He then grabbed a flight attendant (“the victim”), who was seated, shouted “you’re coming with me,” and forcefully brought the victim to the ground. Priester then attempted to drag the victim up the aisle. With the assistance of intervening passengers, Priester was returned to his seat where he continued to act erratically and made incoherent statements. The captain declared an emergency and the flight was diverted back to Bradley Airport. After the plane landed safely at Bradley, Priester was removed by Connecticut State Police and taken by ambulance to a local hospital for evaluation.

Priester appeared today before U.S. Magistrate Judge Thomas O. Farrish in Hartford. He is detained pending a bond hearing that is scheduled for May 30.

The complaint charges Priester with interference with flight crew members and attendants, an offense that carries a maximum term of imprisonment of 20 years.

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

This matter is being investigated by the Federal Bureau of Investigation with the assistance of the Connecticut State Police. The case is being prosecuted by Assistant U.S. Attorney Neeraj N. Patel.

MIL Security OSI –

May 29, 2025
MIL-OSI USA: Rosen Helps Introduce Bipartisan Legislation to Solidify Sanctions on Iran, Target Regime’s Terror Financing

US Senate News:

Source: United States Senator Jacky Rosen (D-NV)
WASHINGTON, DC – U.S. Senator Jacky Rosen (D-NV) helped introduce bipartisan legislation to make permanent critical sanctions targeting Iran’s energy and weapons sectors, aimed at cutting off the regime’s ability to fund terrorism and pursue nuclear weapons. The bipartisan Solidify Iran Sanctions Act builds on the existing Iran Sanctions Act (ISA) of 1996 – which enables the U.S. to impose sanctions on Iran’s energy and weapons sectors that provide critical funding sources for its nuclear program and terrorist proxies – by removing its sunset provision and ensuring continued pressure on the Iranian regime. The bill passed the House of Representatives unanimously earlier this month.
“Sanctions have been critical in holding Iran accountable for its destabilizing actions, including support for terrorist proxies,” said Senator Rosen. “With Iran closer than ever to a nuclear weapon, I’m proud to join my colleagues in introducing bipartisan legislation that applies pressure on the Iranian regime.”
Senator Rosen has been a steadfast advocate for strengthening our national security, combating terrorism, supporting U.S. allies in the Middle East, and countering threats from authoritarian regimes like Iran. Senator Rosen has led bipartisan efforts to freeze Iranian assets, tighten oil sanctions, and ensure the regime is held accountable. Senator Rosen continues to support strong U.S. foreign policy priorities focused on safeguarding global stability.

MIL OSI USA News –

May 29, 2025
MIL-OSI Canada: CBSA seizes 1.73 kg of fentanyl and 59.73 kg of other narcotics during export-focused Operation Blizzard
Source: Government of Canada News (2)

May 28, 2025
Ottawa, Ontario

The Canada Border Services Agency (CBSA) plays an important role in keeping fentanyl, its precursors and other dangerous drugs off our streets. Today, the CBSA shared the results of Operation Blizzard.

Launched as part of Canada’s Border Plan, Operation Blizzard was a month-long (February 12th to March 13th), cross-country surge operation to intercept fentanyl and other illegal drugs in postal, air cargo and marine containers.

During the operation, border services officers examined shipments, with a special focus on mail, air freight and sea containers going to the United States. They acted on increased referrals from CBSA’s National Targeting Centre based on risk assessments. In total, the CBSA executed over 2,600 seizures of suspected narcotics and precursors across the country. 67.5% of all seizures made were of illegal narcotics coming to Canada from the United States, while 17.5% were of narcotics going to the United States. These included:

116 fentanyl seizures (1.73 kg), intercepted in British Columbia, Québec and Alberta. Of these seizures, 1.44 kg were on route to the United States and 0.26 kg were destined to other countries
- 17 meth seizures (5.38 kg and 89 pills)
- 24 cocaine seizures (13 kg)
- 26 heroin seizures (0.19 kg)
- 17 opium seizures (38.84 kg and 11 bottles)
- 48 MDMA seizures (2.32 kg and 82 pills)
- 249 cannabis and cannabis related product seizures
During this same period, the CBSA shared details about other notable seizures of illegal narcotics:

The CBSA will continue to disrupt the supply chain for fentanyl and other illicit drugs through interception of contraband as part of Canada’s overarching efforts to strengthen border security and combat organized crime.

MIL OSI Canada News –
May 29, 2025
MIL-OSI USA: EESC in the News

Source: US Geological Survey

“The blessing and the curse of PFAS is that they’re hard to destroy. These remarkably durable molecules contain super-strong carbon and fluorine bonds that don’t occur in nature. They resist high heat and corrosion. They repel both water and oil.

Chemists created the first PFAS in the 1930s and were quick to put their innovation to use, including in the Manhattan Project, which built the first atomic bomb. By the ’50s the chemicals were becoming key ingredients in industrial processes and mass-produced consumer goods. DuPont used them for its Teflon nonstick pans, 3M for its Scotchgard stain-proofing spray, and food manufacturers for anti-grease packaging. Over the decades, researchers developed a slew of variations—at least 14,000 PFAS exist today, by some definitions—and manufacturers put them in an astonishing range of products, such as raincoats, upholstery, paint, dental floss, and mascara.

Yet while the chemicals have been a boon for business, they are a bane for nature. Once PFAS get into the environment, they break down only very slowly or not at all, says Natalie Karouna-Renier, a research ecologist at the U.S. Geological Survey (USGS). That means nearly all the PFAS created over the past century are still lingering, in some form, somewhere…”

MIL OSI USA News –

May 29, 2025
MIL-OSI USA: USGS Coastal Storm Team gears up for 2025 hurricane season

Source: US Geological Survey

The Atlantic Hurricane Season runs from June 1 through November 30. To ensure readiness, USGS team members meet monthly during the offseason to update members on improvements, processes and new research, said Athena Clark, the team leader and USGS science advisor for the Southeast Region.

“Information gained from each storm continually advances our science capabilities to improve preparedness, reduce risk, and enhance our resilience to respond to the next storm event,” she said. “Our multidisciplinary team works year-round to enhance our nation’s preparedness for hurricanes and other coastal hazards to ensure we provide the comprehensive science and information needed by those who make emergency management and safety decisions quickly to help protect lives and property.”

An extremely active Atlantic hurricane season kept the Coastal Storm Team busy for most of 2024. According to the National Hurricane Center, 11 hurricanes formed during last year’s Atlantic hurricane season with five making landfall in the continental U.S., two as major hurricanes. The 2025 National Oceanic and Atmospheric Administration’s Climate Prediction Center Atlantic hurricane season forecast predicts this year is also expected to be an above-normal season.

When storms threaten the U.S. coastline, the Coastal Storm Team, composed of experts from USGS, the National Hurricane Center, and other agencies, springs into action to share information and help communities prepare. Originally started as a small coordination call three decades ago, the team has expanded to nearly 790 members, improving communication and situational awareness during storms.

“Having representatives from the National Weather Service, FEMA, and the U.S. Army Corps of Engineers on these calls provides valuable real-time updates that help decision-makers track flood impacts and assist affected communities quickly,” Clark said. “These calls give us the opportunity to highlight USGS and other agency products that have been created to help communities and emergency managers make informed decisions about a particular event.”

Clark explained that during the Coastal Storm Team calls, she not only promotes USGS people and capabilities, but also promotes other agencies that USGS coordinates with by sharing their dashboards and work as part of a national effort.

“I see these calls as a time for true information exchange so we all can do our jobs better,” she said. “The bottom line is our mission is to provide data to help protect lives and property.”

Clark became assistant to the Coastal Storm Team leader in 2016 and, as fate would have it, the team leader went on leave later that year right when Hurricane Matthew struck the coast – thrusting her into the leadership chair. She said the team and her survived her “trial by fire,” and she learned some valuable lessons during that experience.

“During a contingency, we don’t have the time or the luxury to fully figure out processes and procedures, so we began scheduling monthly internal USGS hurricane calls throughout the year to help us improve our coordination,” she said. “Most science centers that may have a role during storms have someone participate in our monthly calls as we look for ways to make our online public presence more streamlined and improved.”

Clark believes the Storm Team’s success stems from its collaborative platform, which allows for sharing vital information and assistance.

“These Storm Team calls provide situational awareness to various responding agencies while showcasing USGS products that help communities and emergency managers make informed decisions,” she stated. “For instance, during Hurricane Debbie, a local emergency manager from Georgia requested Rapid Deployment Gauges, and the team quickly deployed them to track real-time water levels.”

The Coastal Storm Team responds to hurricanes, tropical storms, Nor’easters, and even atmospheric river events, particularly along the Pacific Coast and in Hawaii.

“If it’s going to affect the U.S. coastline, which USGS oversees, we will activate a Storm Team call and respond,” Clark said.

The team also manages multi-hazard events like what happened during Hurricane Helene in September 2024, which transitioned from a coastal event to significant inland flooding and landslides.

“Some events begin on the coast and then head inland and cause major flooding and landslides, so we coordinated information for each of these events before we passed the torch and handed off the hazards to both the Flood Team and the Landslide Team to continue coordination efforts,” she said. “It’s essential that we work together as one USGS to accomplish our goals.”

Based on a storm’s forecast intensity and track, the Storm Team decides the timing and extent of the bureau’s storm response. Once it’s determined a hurricane or tropical storm will likely strike somewhere in the U.S., the team leaders decide whether it’s necessary and safe to deploy USGS field crews to the storm’s projected path along the coast to aid in data collecting.

“If deployed, one of the main tasks for the field crews is to install special water-level measuring instruments called storm tide sensors,” said Clark. “These sensors record data that track storm tides and coastal flooding. That information helps public officials assess storm damage, tell the difference between wind and flood damage, and helps USGS and NOAA scientists improve storm surge and coastal change forecast models.”

Over the years, USGS has added hundreds of Coastal Storm Team members to the roster. This ever-expanding roster has led to new relationships and coordination planning between USGS and other federal agencies. For example, NASA and USGS Geospatial Information Response Team meet monthly to coordinate response planning and share information.

After nearly a decade of leadership and countless long hours during dozens of storms and hazardous events, Clark said she’s proud of the fact that the Coastal Storm Team plays a pivotal role in safeguarding lives and property during storm events.

“I get highly energized about the value of our Storm Team because I view this as the epitome of public service and it’s why all of us are here,” she said. “It’s during these events that we are really accomplishing our mission with a laser focus on the work we all do.”

Clark added that she also has a deep appreciation for the USGS employees in the field doing the hard work daily, especially during hurricanes and storms, to help the Storm Team get the data needed to share with our partners.

“Everyone on the team wants to share the information they have, information that can be useful to everyone,” she said. “Team members are energized and excited and possess a willingness to share their data, work, and expertise with each other. We all play a crucial role in helping communities prepare for and recover from storms, while continuously improving our capabilities to reduce risks and enhance resilience against future natural disasters. This team really showcases the value we do for society, and I couldn’t ask for a better collaborative team.”

To learn more about USGS hurricane science, visit: https://www.usgs.gov/special-topics/hurricanes

MIL OSI USA News –

May 29, 2025
MIL-OSI USA: Action Taken on Legislation by Governor Phil Scott – May 28, 2025
Source: US State of Vermont

Montpelier, Vt. – Governor Phil Scott announced action on the following bills, passed by the General Assembly.

On May 28, Governor Scott signed bills of the following titles:
- S.50, An act relating to increasing the size of solar net metering projects that qualify for expedited registration
- S.87, An act relating to extradition procedures
- S.117, An act relating to wage and hour, unemployment compensation, and workers’ compensation
To view a complete list of action on bills passed during the 2025 legislative session, click here.

MIL OSI USA News –
May 29, 2025
MIL-OSI Security: 14 Arrested on Complaints Alleging More Than $25 Million in COVID-19 Relief and Small Business Loans Were Fraudulently Obtained
Source: Office of United States Attorneys

LOS ANGELES – Fourteen defendants – including San Fernando Valley and Glendale residents – were arrested on two federal criminal complaints alleging they fraudulently obtained more than $25 million in taxpayer-funded COVID-19 relief funds and federally-guaranteed small business loans.

The 18 total defendants named in the complaints – four defendants are believed to be in Armenia – are charged with conspiracy to defraud the government with respect to claims; false, fictitious, or fraudulent claims; wire fraud and attempted wire fraud; bank fraud and attempted bank fraud; money laundering conspiracy; laundering of monetary instruments; engaging in monetary transactions in property derived from specified unlawful activity; and/or structuring financial transactions to evade reporting requirements.

The defendants arrested today include:
- Vahe Margaryan, a.k.a. “William McGrayan,” 42, of Tujunga, who allegedly orchestrated a scheme to defraud numerous banks and the Small Business Administration’s (SBA) Preferred Lender Program, a program designed to help small businesses that otherwise might not obtain financing. McGrayan allegedly directed owners of sham corporations to open bank accounts, make false statements, and concoct documents, including phony resumes and financial statements, to support loan applications to buy other sham corporations. McGrayan allegedly paid for phony tax returns that falsely reported millions in revenue and tens of thousands in tax due and owing. McGrayan, whose alleged criminal activity lasted from 2018 until January 2025, then directed the laundering of millions in fraud proceeds through various bank accounts.
- Sarkis Gareginovich Sarkisyan, 37, a.k.a. “Samuel Shaw,” of Glendale, who allegedly, among other offenses, submitted a false application and bogus documents to obtain a loan under the Paycheck Protection Program (PPP), which provided low-interest, forgivable loans to help small businesses retain their workforce and cover expenses. Sarkisyan allegedly applied in April 2021 on behalf of a fake business that received more than $700,000 in PPP funds.
- Mery Babayan, 32, a.k.a. “Mery Diamondz,” of Van Nuys, together with co-defendants Margaryan and Hovannes Hovannisyan, 48, a.k.a. “John Harvard,” of Panorama City, in May 2021 allegedly defrauded a bank by representing the nonexistent sale of a sham business to another sham company to obtain an approximately $3 million federally guaranteed loan through the SBA’s Preferred Lending Program.
- Felix Parker, 77, of North Hollywood, who in January 2023 allegedly made false statements and submitted fraudulent documents, including fake tax returns that falsely reported that his shell company, Canmar Promo, earned millions of dollars annually and owed tens of thousands in federal income taxes. Parker allegedly obtained more than $2 million in government-guaranteed funds earmarked to help small businesses.
- Axsel Markaryan, 47, a.k.a. “Axel Mark,” of Pacoima, who in June 2023 allegedly fraudulently obtained more than $5 million in SBA loans via the submission of false statements and the submission of fake documents, including bogus tax returns. After the loans were obtained, Markaryan and his co-schemers in November 2023 laundered the money, including sending at least $100,000 to a co-schemer in Armenia.
As a result of today’s takedown, law enforcement seized approximately $20,000 in cash, two money-counting machines, paper cash bands or currency straps in denominations of $2,000 and $10,000, multiple cell phones, multiple laptops, two loaded semi-automatic 9mm handguns, and boxes of 9mm ammunition.

“Today’s enforcement action is intended to send a message to all criminals who take advantage of government programs designed to help those who need them most,” said United States Attorney Bill Essayli. “If you took COVID-19 or SBA money you weren’t entitled to, your door could be the next one we visit. Together with our law enforcement partners, my office will aggressively prosecute individuals who cheat the system meant to protect and support law-abiding citizens.”

“Scheming to fraudulently obtain federal funds that were meant to provide assistance to the nation’s small businesses is unacceptable,” said the U.S. Small Business Administration Office of Inspector General (SBA-OIG) Western Region Acting Special Agent in Charge Jonathan Huang. “OIG will continue to ardently investigate fraudulently obtained SBA program funds, including COVID-19 pandemic-related loans, to protect taxpayers from fraud, waste, and abuse. I want to thank the U.S. Attorney’s Office and our law enforcement partners for their dedication and pursuit of justice.”

“This transnational criminal network sought to defraud the government of millions of dollars and almost succeeded,” said Homeland Security Investigations (HSI) Los Angeles Acting Special Agent in Charge John Pasciucco. “Through the diligent work of the El Camino Real Financial Crimes Task Force and our federal partners, HSI is continuing to identify these criminal groups looking to profit from the pandemic and will use all available resources to criminally prosecute or remove them from the country.”

“Today, 14 individuals were arrested in connection with a fraudulent loan scheme in which they allegedly obtained in excess of $25 million through the SBA Paycheck Protection Program, Economic Injury Disaster Loan programs, and other federal funding programs,” said IRS Criminal Investigation Special Agent in Charge Tyler Hatcher, Los Angeles Field Office. “These programs were established to assist individuals and businesses in need of financial assistance and instead were pilfered by the named defendants. IRS-CI is dedicated to identifying and dismantling criminal organizations that prey on assistance programs set up for the benefit of our law-abiding citizens.”

A criminal complaint contains allegations. All defendants are presumed innocent until proven guilty beyond a reasonable doubt in a court of law.

If convicted, each defendant would face a statutory maximum sentence of decades in federal prison.

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

On September 15, 2022, the Attorney General selected the U.S. Attorney’s Offices for the Central and Eastern Districts of California to jointly head one of the three national COVID-19 Fraud Strike Force Teams. The Department of Justice established the Strike Force to enhance existing efforts to combat and prevent COVID-19 related financial fraud. The Strike Force combines law enforcement and prosecutorial resources and focuses on large-scale, multistate pandemic relief fraud perpetrated by criminal organizations and transnational actors, as well as those who committed instances of pandemic relief fraud. The Strike Force uses prosecutor-led and data analyst-driven teams to identify and bring to justice those who stole pandemic relief funds. Additional information regarding the Strike Force may be found at https://www.justice.gov/opa/pr/justice-department-announces-covid-19-fraud-strike-force-teams.

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

SBA-OIG, IRS Criminal Investigation, and HSI are investigating these matters.

The cases announced today were investigated by the U.S. Department of Homeland Security’s Office of Inspector General and Homeland Security Investigations’ (HSI) El Camino Real Financial Crimes Task Force, a multi-agency task force that includes federal and state investigators who are focused on financial crimes in Southern California.

Assistant United States Attorneys Mark Aveis and Gregg Marmaro of the Major Frauds Section and Maxwell Coll of the Cyber and Intellectual Property Crimes Section are prosecuting these cases.

MIL Security OSI –
May 29, 2025
MIL-OSI Security: U.S. Attorney’s Office in Chicago Obtains Forfeiture of $214 Million in Proceeds From Alleged “Pump and Dump” Investment Fraud Scheme

Source: Office of United States Attorneys

CHICAGO — The U.S. Attorney’s Office has successfully obtained forfeiture to the government of approximately $214 million in proceeds from an alleged “pump-and-dump” investment fraud scheme that previously resulted in charges against seven individuals.

From November 2024 to February 2025, the defendants engaged in misleading promotion and coordinated trading of shares of China Liberal Education Holdings, Ltd., a company incorporated in the Cayman Islands that purported to provide educational services in China, according to an indictment returned in March in U.S. District Court in Chicago. The scheme, known as a “pump-and-dump,” allegedly involved individuals in China posing as U.S.-based investment advisors on social media and messaging platforms and falsely promising significant returns from investments in the company. The misleading promotion and coordinated trading caused the stock price to artificially rise, at which point the defendants sold thousands of shares and made millions of dollars in profits, the indictment states. The stock price ultimately decreased significantly, at the expense of other investors, some of whom lost almost the entirety of their investment.

During the investigation, federal law enforcement seized approximately $214 million in alleged proceeds from the fraud scheme. The funds are currently in U.S. custody. On Tuesday, U.S. District Judge Jorge L. Alonso granted a motion by the U.S. Attorney’s Office in Chicago to have the money permanently forfeited to the United States. The order allows for the government to return the money to victim investors.

The forfeiture order was announced by Andrew S. Boutros, United States Attorney for the Northern District of Illinois, and Douglas S. DePodesta, Special Agent-in-Charge of the Chicago Field Office of the FBI. Valuable assistance was provided by the Boston Regional Office of the U.S. Securities and Exchange Commission and the SEC’s Office of Inspector General. Assistant U.S. Attorney Jared Hasten represents the government.

“As alleged in the indictment and forfeiture complaint, the defendants defrauded U.S. investors through deceitful and coordinated trading activities,” said U.S. Attorney Boutros. “Our attorneys and staff in this case placed a high priority on recovering funds for victims. The large forfeiture order of more than $200 million should serve as a warning that federal law enforcement will aggressively pursue fraudulent profits from those who seek to prey upon investors by manipulating the U.S. stock market.”

“Despite the overwhelming manipulation as alleged in this case, this serves as one of the premier FBI investigations in which the federal government was able to successfully recover victims’ hard-earned money before it disappeared into overseas bank accounts,” said FBI SAC DePodesta. “This elaborate fraud scheme boasting bogus profit potentials has caused extensive harm to unsuspecting Americans. The FBI will continue to work with our partner networks to ensure that justice is served against anyone who seeks to weaponize financial systems to gain personal profit.”

Seven individuals were charged in the criminal indictment with wire fraud and securities fraud: LIM XIANG JIE CEDRIC, of Malaysia, MING-SHEN CHENG, of Taiwan, KO SEN CHAI, of Malaysia, KING SUNG WONG, of Malaysia, SIONG WEE VUN, of Malaysia, CHIEN LUNG MA, of Taiwan, and KOK WAH WONG, of Malaysia. The defendants are not in custody and warrants have been issued for their arrests. The public is reminded that an indictment contains only charges and is not evidence of guilt. The defendants are presumed innocent and entitled to a fair trial at which the government has the burden of proving guilt beyond a reasonable doubt.

If you believe you or someone you know may have been victimized by the fraud scheme charged in the indictment, you are encouraged to notify the FBI by completing this online form or calling 1-800-CALL-FBI (1-800-225-5324).

MIL Security OSI –

May 29, 2025

Category: United States of America

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